Sustainable development recognizes that growth must be both inclusive and environmentally sound to reduce poverty and build shared prosperity for today’s population and to continue to meet the needs of future generations. It must be efficient with resources and carefully planned to deliver immediate and long-term benefits for people, planet, and prosperity.
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World Bank Country Director to meet with Government HONIARA, January 29, 2014 – The Solomon Islands Government today signed agreements with the World Bank for a sustainable fisheries project, fun... Show More +ding support for rural poverty alleviation and flood relief, as well as continued economic and fiscal reform.World Bank Country Director for Timor-Leste, Papua New Guinea and the Pacific Islands, Franz Drees-Gross signed the agreements with Solomon Islands Minister of Finance Snyder Rini in Honiara.During his two-day country visit, Mr Drees-Gross will also meet members of the Solomon Islands Government who assumed office late last year, including Prime Minister Manasseh Sogavare and the Finance Minister.The Finance Minister Hon. Snyder Rini said, “The World Bank’s support is aligned with the Government’s plan to drive economic growth, improve the lives of rural people and carry out economic and financial reform.” The signing included agreements for three projects approved and announced in late 2014:US$11.12 million for a Solomon Islands investment project under the Pacific Islands Regional Oceanscape Program (PROP) – consisting of US$5.17 million in grants (including $US1.37 million from the Global Environment Facility Trust Fund) and US$5.95 million credit.A separate US$6.16 million grant for the Forum Fisheries Agency under the Pacific Islands Regional Oceanscape Program (PROP).US$9 million for the Rural Development Program Phase Two (RDP II) comprising of a US$4 million grant and a US$5 million credit; and a US$13.3 million (AU$15 million) grant in RDP II contribution from the Australian Department of Foreign Affairs and Trade.A US$5 million grant for an Economic Reform and Recovery Development Policy Operation.“The three projects we are signing today will support the people of the Solomon Islands with the opportunities needed to lead more prosperous, sustainable and resilient lives,” said Mr Drees-Gross. “The projects are also indicative of the strong relationship between the World Bank and the Solomon Islands Government, as well as other development partners including the Australian Government, who have contributed significantly to the second phase of the Rural Development Program.”In the Solomon Islands, PROP will build the capacity of the Ministry of Fisheries and Marine Resources to better manage coastal and ocean tuna fisheries, including improving vessel monitoring and the ability of communities to carry out coastal fisheries activities.PROP will engage with the Forum Fisheries Agency to provide regional coordination, implementation support, training and monitoring and evaluation for participating countries such as the Solomon Islands, Federated States of Micronesia, the Republic of the Marshall Islands and Tuvalu.“PROP will assist Pacific Island country Governments and citizens to improve the sustainable management of their coastal and ocean fisheries, which is critical to regional economic integration and growth,” said the Director General of the Forum Fisheries Agency James Movick at the signing ceremony. “PROP will build on existing fisheries management policies and frameworks already adopted by governments and administrations in the region.”RDP II will continue to target rural poverty and is expected to benefit approximately 375,000 people, and improve rural community access to services such as water supply, health and education facilities, transport and energy. In addition, approximately 17,000 smallholder farming households, agribusiness owners and agriculture contributors will benefit from RDP II through investments in agriculture productivity, marketing and business partnerships.The US$5 million Economic Reform and Recovery Development Policy Operation will provide rapid financing to assist recovery from severe flooding in 2014 and support the Solomon Islands Government’s ongoing financial and economic reform agenda. “The Solomon Islands economy has grown relatively strongly over the last ten years” concluded Mr. Drees-Gross. “However, the floods of April last year, and the closure of Gold Ridge Mine, demonstrate how fragile this growth can be and the importance of continuing to explore sustainable growth opportunities and improvements in how services are delivered to rural communities.” Show Less -
WASHINGTON, January 29, 2015 – The World Bank’s Board of Executive Directors today approved a US$24 million Energy Sector Development Policy Operation (Energy Sector DPO) for the Kyrgyz Republic. ... Show More +; The operation will support the Kyrgyz Republic’s reforms aimed at long-term energy supply reliability, through a single tranche of a highly concessional credit of US$13.2 million and a grant of US$10.8 million to be paid directly to the Kyrgyz budget.Despite its vast hydropower resources, the energy sector in the Kyrgyz Republic, which accounts for about four percent of GDP and 16 percent of the industrial production, suffers from deeply rooted structural issues. The Kyrgyz Republic has the lowest electricity tariffs in the Europe and Central Asia region, which contributes to the inefficient use of energy, severe under-spending on maintenance and new investments, and resulting poor supply reliability and quality. The patchwork regulatory framework and insufficient transparency and accountability result in operational inefficiencies and undermine public trust in the sector.These underlying weaknesses of the sector, when coupled with cycles of poor hydrology, lead to recurrent winter energy shortages with serious repercussions for the population and the economy. The 2014-2015 winter situation has been particularly alarming because of the significantly reduced water inflows in the Toktogul reservoir caused by insufficient precipitation and glacier melting, low levels of coal and fuel oil reserves due to the dire financial condition of the energy sector, and significant growth of power demand in recent years.The Energy Sector Development Policy Operation has been designed to support select reforms of the Kyrgyz Government’s Energy Sector Action Plan for 2013-2014, with a focus on three policy areas:(i) improving financial viability of the energy sector through tariff reforms;(ii) strengthening energy sector governance, transparency, and accountability through establishment of an economic regulator, adoption of a clearly defined tariff setting methodology, implementation of a performance reporting and monitoring framework, as well as public outreach and communication; and(iii) managing the impact of power shortages on the poor regions through preparation and implementation of power supply management plans for the regions based on the principles of transparency, equitability, predictability, and preservation of essential services.“The policy areas of the Energy Sector DPO are interlinked and essential for addressing energy supply reliability in a sustainable manner,” said Ani Balabanyan, World Bank’s Senior Energy Specialist and Task Team Leader for the Energy Sector DPO. “Firstly, improved financial viability of the energy sector through power and heating tariff reforms will allow investments in maintenance and system improvements, and procurement of fuel for the combined heat and power plants. Secondly, strengthened governance, transparency and accountability of the sector will ensure that increased revenues lead to improvements of sector operational and financial performance for the benefit of all groups of population. Finally, the management of power shortages will ensure that power rationing is equitable across the country and is not to the detriment of poor regions.”The Kyrgyz Government’s reforms, initiated to address winter energy shortages and broader energy supply reliability issues, include introduction of the mid-term tariff policy for electricity and heating for 2014-2017, recent amendments to the laws that created a legal basis for clearly delineating roles and responsibilities in the energy sector, and establishment of the State Regulatory Agency of the Fuel and Energy Complex. The establishment of a performance reporting and monitoring framework, under which the service quality indicators will be regularly monitored and published to build larger accountability and consumer confidence in the sector, is another important achievement of this reform process.“The reforms supported by this operation will contribute to both economic growth and poverty reduction in the Kyrgyz Republic. The improved reliability of power supply and the increased financial sustainability of the energy sector are critical for improving the competitiveness of businesses, and will help to improve the quality of life for Kyrgyz people,” said Jean-Michel Happi, World Bank Country Manager in the Kyrgyz Republic. “It is important that these reforms are accompanied with improvement of the social protection system in order to better target the poor and ensure that access to electricity and heating remains affordable for low-income households.”The World Bank development policy financing aims to help the countries achieve sustainable growth and poverty reduction through non-earmarked general budget financing that supports the countries’ economic and sectoral policies and institutions.The World Bank’s overall mission in the Kyrgyz Republic is to reduce poverty, and promote economic growth and shared prosperity. Forty-five percent of the World Bank’s assistance to the Kyrgyz Republic is in the form of grants. The other 55 percent is in highly concessional credits with no interest, and only a 0.75 percent service charge. Credits are repayable in 38 years, including a 6-year grace period, while grants require no repayment. The Bank’s financial assistance to the Kyrgyz Republic since 1992 amounts to over US$1 billion. Show Less -
IDA Credit: US$13.2 million equivalentTerms: Maturity = 38 years, Grace = 6 yearsIDA Grant: US$10.8 million equivalentProject ID: P152440Project Description: The objective is to support the Kyrgyz Rep... Show More +ublic in addressing the recurring winter energy shortages in order to minimize the hardship on its population and dampen negative economic consequences for its economy in a sustainable manner.Contact:For more information, please visit: http://www.worldbank.org/projects/P152440?lang=en Show Less -